On Dec. 1, RUS PRL issued draft law on taxing of cryptocurrencies.
RUS CB issued draft law to amend the tax law and introduce a tax on cryptocurrencies.
Concerns
Cited concerns that cryptocurrency is often used for tax evasion or money laundering.
As well as to finance illegal activity, and that at present the tax authorities do not have information about cryptocurrency wallets opened by Russian legal entities and citizens.
Inclusion in Tax Code
Proposal is to recognize digital currency as property for the purposes of the tax code.
Introduces an obligation to submit a report if the amount of receipts or write-offs of digital currency for a calendar year exceeds an amount equivalent to 600k rubles.
Fines are imposed for failure to provide timely/accurate information on transactions.
Feb. 2021 Committee Consideration
On Feb. 15, 2021, RUS PRL confirmed the committee on state building and legislation had reviewed the draft law on taxation of cryptocurrencies and made some comments.
They said that amendments to Russian legislation are necessary in order to regulate the consequences of spread of digital currency and expand number of entities using it.
However, there is no concept of digital currency in civil code of the Russian Federation.
The use of the concept of digital currencies in tax legislation will create uncertainty in tax regime for a many Russian businesses and problems in law enforcement practice.
Creating a tax regime for digital currencies is impossible without clarifying the range of objects that can be classified as digital currency and relationship with digital rights.
This requires preliminary inclusion of concept of digital currency in civil code and the simultaneous correction of this concept in the current law on digital financial assets.
Also, the proposals under draft law on powers of tax authorities to request statements from banks of accounts used for transactions with digital currency, require clarification.
The grounds for sending such a request are formulated very broadly and banks will be forced, in response, to provide information on all accounts and deposits of individuals.
Feb. 17, 2021 First Reading Passed
On Feb. 17, 2021, RUS PRL announced cryptocurrency tax bill first reading passed.
Reporting on disposal/transactions/balances must be submitted to tax authority no later than Apr. 30 after reporting year, first reporting period is expected to be 2021.
Failure to provide details on right to dispose of digital currencies, 50,000 rubles fine.
Transaction non-reporting fine may be 10% of receipts/write-offs, whichever is largest.
Proposed tax non-payment fine on digital currency transaction is 40% unpaid amount.
Tax office can obtain from banks individual account detail/not individual entrepreneurs.
Nov. 2024 Update
On Nov. 15, 2024, RUS GVT announced cryptocurrency tax bills Econ’s reading passed.
Digital currency will be recognized as property for tax purposes and income in the form of digital currency obtained as a result of mining will be also accounted for accordingly.
At the same time, income can be reduced by expenses incurred from mining activities. Transactions with digital currency will not be subject to VAT but income will be taken into account in the same tax base as income from transactions with securities.
Thus, the maximum personal income tax rate for taxation will not exceed 15%.
Nov. 29, 2024 Law Issued
On Nov. 29, 2024, RUS GVT issued law 418-FZ on amendments to parts one and two of the tax code of Russia and certain legislative acts of the Russian Federation.
The law enters into force on the day of its official publication, except for articles 1, 3 and 4, which enter into force on Jan. 1, 2025
Regulators
RUS PRL
Entity Types
Auditor; Corp; MSB
Reference
PR, law 418-FZ, 11/29/2024; PR, 11/15/2024; PR 2/17/2021; PR 2/15/2021; PR 12/1/2020; Bill 1065710-07; Fintech
